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A total of 12 Indonesian and Singaporean banks have been appointed to facilitate cross-border settlements under the new framework, which aims to make it easier for businesses to transact directly in the two local currencies.
Indonesia and Singapore have moved to make it easier for businesses to settle cross-border transactions in Indonesian Rupiah and Singapore Dollars.
Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) announced on Monday (31 August 2026) that their Local Currency Transaction (LCT) Framework is now operational. The arrangement is intended to support trade, direct investment and cross-border payments between the two countries, while giving companies more flexibility over how they manage currency exposure.
The framework allows designated banks in both markets, known as Appointed Cross Currency Dealers (ACCDs), to facilitate settlements in rupiah and Singapore dollars. Key features of the framework include the promotion of direct quotations between the Indonesian Rupiah and Singapore Dollar, as well as implementation of relevant rules and regulations to enhance the usage of local currencies.
The aim is to provide flexibility in settlement currency and potentially lower foreign-exchange costs and risks.
From agreement to implementation
The operational launch follows several years of work between the two authorities, with BI and MAS signing a Memorandum of Understanding (MoU) in August 2022 to explore the promotion of local currencies for bilateral transactions, including trade and direct investment.
That MoU was announced alongside plans for a cross-border QR-payment connection between Indonesia’s QRIS system and Singapore’s NETS QR network. While the payment-linkage initiative focused largely on retail payments, tourism, and small businesses, the local-currency arrangement addresses the broader settlement infrastructure behind trade, investment and cross-border payments.
In April 2026, BI and MAS agreed on operational guidelines for the LCT Framework, paving the way for its formal implementation.
Banks appointed to support the framework
Nine banks in Indonesia and three in Singapore have been appointed as ACCDs to support the rupiah–Singapore dollar framework. The list is as follows:
Indonesian ACCD banks:
- PT Bank Central Asia Tbk
- PT Bank CIMB Niaga Tbk
- PT Bank DBS Indonesia
- PT Bank Mandiri (Persero) Tbk
- PT Bank Maybank Indonesia Tbk
- PT Bank Negara Indonesia Tbk
- PT Bank OCBC NISP Tbk
- PT Bank Pembangunan Daerah Jawa Timur Tbk
- PT Bank UOB Indonesia
Singaporean ACCD banks:
- DBS Bank Ltd.
- Oversea-Chinese Banking Corporation Limited
- United Overseas Bank Limited
READ MORE: AI, ambition, and the new employee deal: 4 lessons for navigating workforce change in Indonesia
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